Saudization is effectively changing the shape of the Saudi economy by tackling the unemployment issues the Kingdom has been dealing with.

The Saudi nationalization scheme is a key component of the Vision 2030, a plan to diversify the Saudi economy from its oil dependence.

By hiring more Saudi’s and allowing for business startups to set up more easily, the new plans are going to entirely make over the Saudi economy. 

The economy of the Kingdom is in the top twenty economies in the world, as part of the G20 (Group of 20). As the land with the second largest petroleum reserves in the world, Saudi Arabia relied on oil throughout most of its history.

In 2016, Crown Prince Mohammad bin Salman announced the Vision 2030.

In 2019, the Kingdom’s economy recorded its first surplus since 2014, indicating a notable change upon the implementation of Saudization. 

Saudi Arabia is currently in the process of making fast and unprecedented changes; in an attempt to attract new business ventures, a new entrepreneurial license was issued by SAGIA (Saudi Arabia General Investment Authority) in 2018. During the same year, foreign investments boomed with a 110% increase.

During the last quarter of 2019, Saudi government began to reduce spending when growth in the private sector was recorded.

Indicators point towards a fast and efficient Saudization process and a rapid execution of the Vision 2030 plans.

In order to make these changes happen, the Saudi government is also working on improving the business experience for small business owners; as the year began, a new regulatory change allowed businesses to open 24/7.

It became one of many threads meant to put together the ‘New Saudi.’ As the people of Saudi become its face to the world, the government also makes it easier for investors to visit and search for entrepreneurial opportunities; in 2020, a new visit visa rule allowed for UK, U.S. and Schengen visa holders to enter the Kingdom with a visa on arrival. 

The economy of Saudi Arabia was historically associated with the Kingdom’s oil riches, but the Vision 2030 along with Saudization are executive plans designed to involve Saudi nationals in the transformation of their country’s economy.

source: proven-sa

Advisers and investors said that the Foreign Capital Investment Law will contribute to establishing new investment entities and open up investment and employment opportunities in the Sultanate, directly or indirectly.

The new law will help combat illicit trade and regulate the labour market, said observers, noting that the Sultanate’s business infrastructure is now ready to attract investments, with penalties stated in the new law serving as a deterent against fraud.

Ahmed bin Abdulkareem al-Hooti, Oman Chamber of Commerce and Industry (OCCI) Board Member, said that the Foreign Capital Investment Law is an element among a set of laws that regulate commercial and economic activities, as well as investment in general.

 Al-Hooti pointed out that the Foreign Capital Investment Law also functions alongside the Law on Partnership Between Public and Private Sectors, Privatization Law, Investment Law and Bankruptcy Law. This is in addition to the establishment of the Commercial Arbitration Centre, which will help investors in decision making.

Meanwhile, Dr. Yousef bin Hamad al-Balushi, CEO of Investment Smart Portal, said that investment, in general, and foreign investment, in particular, assume great significance in any development process, and this prompts all countries to grab investment opportunities.

He added that there is currently an urgent need to speed up steps towards encouraging and attracting investments, locally and internationally, for a variety of realities dictated by the growing stage, which has almost attained its prime in infrastructure and legislations. 

This, in turn, dictates transformation into a new model that is capable of yielding fruits, in terms of major investments, and maximizing benefits from the Sultanate’s preparedness and high status among world countries.

 The Foreign Capital Investment Law enables the investor to exclusively own the land of a project or share it with another foreign investor or Omani investor, said Dr.

Adil al-Maqdadi, a former Associate Professor, Faculty of Law, Sultan Qaboos University (SQU), an advocate and legal adviser at the Office of Dr.

Ahmed Said al-Jahwari Legal Consultants.  This law has not imposed any bottom-line capital for his company, unlike the previous law, which imposes a minimum of RO15,000 for approaching an investment venture.

source: omannews

Saudi Arabia’s startups attracted $67 million worth of investments in 2019, an increase of 35 percent from the previous year, a new report shows.

The stand-out year for entrepreneurship in Saudi Arabia also saw 71 investment deals, which represents a rise of 92 percent since 2018, and a record number in comparison to any other year, according to startup platform MAGNITT.

There was also an increase of 58 percent in institutional investors in startups based in the kingdom to a total of 41 institutions. Around one-third of these institutions were based outside Saudi, mainly in the UAE. At the same time, accelerators accounted for nearly one-third of all deals.

“There are several factors that contribute to the growth of the Saudi startup ecosystem in general: the size of its economy and population, as well as a high income per capita and internet penetration,” Philip Bahoshy, MAGNiTT's Founder and CEO told Zawya.

“This, combined with the increased government focus on the entrepreneurship sector through Funds of Funds, capital matching programs, accelerator programs, licensing schemes and other initiatives, contribute to the growth of the startup sector as a whole,” he added.

The rise in venture capital funding and number of deals in Saudi placed it at the third highest spot for both categories in the Middle East and North Africa, following UAE and Egypt.

The kingdom accounted for 12 percent of the total deals in the region, and 9 percent of the total funding. It also recorded the region’s fastest year-on-year growth in venture funding deals in 2019. 

Rising Industries

In terms of industries, e-commerce and delivery & transport were the top two sectors in terms of the number of deals and amount of venture capital (VC) funding.

Data analytics has been a rising sector accounting for the third highest number of VC deals in the kingdom. Education was also gaining momentum and was the third highest recipient of amount of VC funding.

Historically, nascent and quickly growing ecosystems saw industries such as logistics, transport, and e-commerce rise as a first wave of startups and venture capital funding, Bahoshy said.

“To a certain extent, this is still the case in Saudi Arabia and the wider MENA region. Hence, it is expected that these sectors remain prominent,” he said.

However, more high-tech sectors such as FinTech and IT Solutions / Data Analytics have seen a recent surge in the wider MENA region in terms of number of deals, with certain governments focusing specifically on FinTech as a sector, according to him.

“This trend is expected to become more prevalent in Saudi Arabia in 2020 as well, with government initiatives such as FinTech Saudi aiding the growth and adoption,” he added.

source: .zawya

Capital adequacy of applicants to be assessed on a case-by-case basis

Saudi Arabia's central bank is reviewing licence requests for two digital banks to operate in the kingdom, the Saudi Arabian Monetary Authority (SAMA) confirmed to Zawya on the phone.

“Work is underway to evaluate these two licence requests,” Yazeed Alsheikh, director for general of banking control at SAMA, was earlier quoted as saying in local daily Aleqtisadiyah.

He added that  the policy for granting licenses for digital banks is done through a comprehensive evaluation process that takes into account what added value a provider can bring to the Saudi banking sector.

Earlier this week, SAMA issued licensing guidelines for digital-only banks in Saudi Arabia.

It stipulated that online banks must set up as a locally incorporated joint-stock company and maintain a physical presence in the kingdom.

The Saudi regulator will assess the adequacy of capital of applicants “on a case-by-case basis considering the scale, nature and complexity of the operations,” SAMA said.

source: zawya

Large banks based in the United Arab Emirates (UAE), one of the Middle East’s leading financial hubs, have been investing in digital transformation projects to compete in an industry with rapidly changing consumer requirements – according to analysis performed by Bloomberg Intelligence.

The analysis revealed that technological innovation is vital when it comes to acquiring market share and developing flexible, cost-effective solutions.

Higher IT spending may lead to a consolidation of smaller financial institutions as larger banks upgrade their legacy platforms, the analysis noted.

It also mentioned that traditional banks might also merge with other institutions in order to become stronger and more competitive.

The analysis found that Emirates NBD (ENBD), one of the largest banking groups in the Middle East, is ahead of its competitors in the region in terms of its digital transformation efforts.

It was notably among the first to migrate its core banking platforms to an application program interface (API)-enabled solution, which was backed by a AED 1 billion (appr. $272.3 million) investment.

ENBD’s API Sandbox, introduced back in November 2018, offers a controlled environment where Fintech firms can pilot various solutions that could be used to enhance the bank’s core operations.

Competitors are likely to work on similar projects, and would have to follow policy requirements that are somewhat similar to Europe’s Payment Services Directive, which requires giving open-banking access to all businesses, which includes Fintech firms.

source: crowdfundinsider

Experts caution that the region is facing a talent shortage, which could delay the process of digital transformation.

Organisations in the Middle East and Africa are expected to spend $30 billion (Dh110.1bn) on digital transformation this year, driven largely by industries such as banking and energy.

“Total IT [information technology] spend in the MEA will be $90bn in 2020 and one-third of this will directly go towards digital transformation initiatives,” Jyoti Lalchandani, group vice-president and managing director for MEA and Turkey at International Data Corporation, told The National.

The Massachusetts-based research company is expecting significant growth in technology investment in the coming years and projected that spending will grow at a compound annual rate of 18 per cent in the region over the next four years.

With more number of industries, such as banking and energy, leveraging new technologies to transform their operations, “there would be a significant rise in digital transformation spending” said Mr Lalchandani.

The banking and finance industry will spend $13.23bn on technology this year but IDC forecasts this figure will reach $15.4bn by 2023, growing at a compound rate of 4.7 per cent.

Resource industries - including oil and gas mining - will spend $5.33bn on technology this year. This is predicted to grow to $5.79bn over the next three years.

Dubai Internet City, one of the investment zones in the emirates, foresees lack of good talent as a hindrance in the ongoing digital transformation drive.

“Our government is pushing digital transformation in a big way and positive results are before everyone… Dubai Internet City is also playing a crucial role in attracting new talent and technologies,” said Ammar Al Malik, managing director of DIC.

But we still need to do more and the industry is facing a talent shortage,” said Mr Malik.

Currently, more than 25,000 people are working at DIC and the authorities expect this number to reach 40,000 in the next six to seven years.

Korn Ferry, a Los Angeles-based management consulting firm, predicted that there will be a global tech talent shortage of more than 85 million people, which is roughly equivalent to the population of Germany, over the next ten years.

This could result in $8.5tn in unrealised revenues, it added.

A talent shortage will impact the region in two ways, said Mr Lalchandani.

“It will slow down the investment and force the companies to automate more.

I won’t say that with automation there will be job cuts … rather, it will lead to job rationalisation as new kinds of jobs will be created and companies will be required to upskill their current staff,” he said.

Technology firms agree there is a skills gap in the region that is pushing back the speed of digitisation.

“Our regional customers face a lot of skill shortage … especially in the fields of performance-oriented jobs that involve quick trouble-shooting, analysing huge data and predicting future trends,” Charbel Khneisser, Europe, Middle East and Africa director at Riverbed Technology, said.

“This is slowing the pace of digital transformation efforts,” he added.

California-headquartered Riverbed has more than 1,000 clients in the Middle East, with Saudi Arabia and the UAE – the Gulf’s largest economies – its biggest markets.

“To minimise the impact of talent shortage on the companies’ bottom line, we provide them monitoring tools or software to perform various tasks,” added Mr Khneisser.

source: thenational

The UAE is known to encourage entrepreneurs to unlock the potential that the nation has to offer them in fulfilling their business aspirations.

The recent reforms introduced by the wise leadership of the country to boost confidence among startups also proves that the ecosystem has matured, and is now expanding its reach in the region, with Egypt and Saudi Arabia complementing the growth.

The latest report from Magnitt indicates that the number of investments in Mena-based startups was up 31 per cent in 2019, with 564 investments and $704 million in total funding, up 13 per cent compared to 2018, excluding previous mega-deals in Souq and Careem.

"With exits at an all-time-high, including the Mena region's first unicorn exit, the region's founders, investors, and governments are seeing the returns on their efforts in the tech venture space," said Philip Bahoshy, founder and chief executive, Magnitt.

In 2019, Egypt, for the first time ever, accounted for the largest number of deals in Mena with a jump of 25 per cent, while the UAE accounted for the lion's share of total funding and a surge of 60 per cent.

Egypt is the largest and most promising startup hub of the Mena region. The government has been working very hard to open up opportunities for foreign investments. Rainmaking is working with Egyptian entrepreneurs and local ecosystem players since 2014 and has engaged more than 150 startups, provided support to almost 900 founders, and worked with nearly 70 local partners so far.

So how do Egypt and the UAE complement each other in the startup space? "Egypt provides an extensive pipeline of startups, entrepreneurs and talents, while the UAE offers significant availability of infrastructures and funding. Together, Egypt and the UAE could build an active alliance to drive innovation in the region and export innovation globally from the UAE," said Ahmed El Sherif, managing director at Rainmaking Innovation Egypt.

"We expect a big spurt of funds to support startups over the next three to four years.

In terms of industries, we are recording the greatest interest from local corporations into innovation investments in the fintech, insurtech, tourism, healthcare, industrial sectors, and impact industries."

Similarly, Saudi and the UAE complement each other a lot in the startup space. "The UAE has leapfrogged in innovations, bringing in international investors, and taking away the lead, but Saudi is already catching up," says Taha Sajid, chief technical consultant, Limar Global Tech.

"I have not come across any one business startup, who have started in either of these countries but not have their eyes on the other; Saudi for the investment perspective and the UAE for getting market exposure. It is due to the fact that in order for startups to grow, they need to have a proper ecosystem, have market adoption, get the investment for liquidity, loyal customers, all of these things are possible if you are not only restricted to one jurisdiction. Apart from less travelling distance, they share the same cultural/religious/traditional aspect and even the resources ethnicity, like most people belong to Mena, India, and Pakistan, they understand each other well, which makes them complement each other," added Sajid.

Saudi Arabia will emerge as a popular startup hub in the Mena region; the main reason is the cultural change through the national transformation drive of Vision 2030 and the ease of doing business with the direct involvement of the Saudi government through its proper structure.

"Any startups, whether local or international, if the idea is appealing and suits the local market, will get the proper guidance through different bodies. If there is a fintech startup, regulations have clarity in terms of business activities that need to be regulated or not and how SAMA and CMA are interrelated. Secondly, there is a separate framework for local and international entrepreneurs with the proper step and process flow. All this process is being driven by the Ministry of Commerce and Investment, supported by incubators like Badir and facilitators like Fintech Saudi. On the other hand, if you are an IT startup, there is digital transformation hub driven by the Ministry of communication and IT, so all the bases are covered when it comes to supporting startups," said Sajid.

Innovation remains top of the agenda for many governments from across the region.

According to Magnitt, Hub71 in Abu Dhabi was created to spur innovation in the capital with $250 million in funds to support regional and international startups scale in the region.

Moreover, also Saudi Arabia has seen a shift in policy. Multiple initiatives have eased the ability of startups to enter the country, access education and scale within the Kingdom. Only recently, the Public Investment Fund (PIF) announced a $1billion Fund of Funds (FoF) to spur venture investments.

Egypt, given its scale and educational system, remains a key hotbed of innovation, with many early- stage companies and founders solving big market issues that are local to them. "Dubai, with a first-mover advantage, continues to assess how best to encourage and foster the startup ecosystem with new legislation and support, including golden visas for founders to help develop its ever-evolving ecosystem," added Bahoshy.
source: menafn

The World Bank Group announced two new initiatives to improve access to start-up financing and e-commerce markets for women entrepreneurs, at the Women Entrepreneurs Finance Initiative (We-Fi) Middle East and North Africa (MENA) Summit.

“Starting and growing a business is one of the most powerful tools for women to overcome poverty and build better lives for themselves, their families, and their communities,” said David Malpass, World Bank Group President. “Removing regulatory barriers along with obstacles to access to finance and markets can give women-led businesses the opportunity to succeed.”

We-Fi, housed at the World Bank, has so far allocated close to US$250 million to tackle challenges women entrepreneurs face in developing countries. The allocations aim to reach 114,000 women entrepreneurs. We-Fi is a powerful catalyst for additional investment, helping mobilize more than US$2.6 billion in additional public and private sector funds.

At the We-Fi MENA Regional Summit, held during the Global Women’s Forum Dubai 2020, the International Finance Corporation (IFC) and We-Fi launched the ScaleX program to incentivize accelerators to support start-up businesses led by women. IFC research shows that women entrepreneurs in emerging markets face a daunting gender finance gap with only 11% of enterprises that actually attain seed funding being female-led.  New research shows that despite women leading half the start-ups that participate in accelerators—entities designed to train and support the development of start-ups to become investment ready—they continue to face greatly unequal access to capital.

The program will incentivize emerging markets accelerators to work with women-led businesses by providing performance-based payments of US$25,000 for every woman entrepreneur that raises US$1 million from investors in start-up funding. 

"We are launching the ScaleX program to help women entrepreneurs in emerging markets to access funding at a crucial stage to grow their businesses,” said Sérgio Pimenta, IFC Regional Vice President for the Middle East and Africa. “This is a win-win for accelerators, investors, and women entrepreneurs.”

The World Bank and UPS also announced today a new partnership to help women entrepreneurs in the Middle East and North Africa region to grow their businesses by assisting them in successfully leveraging e-commerce platforms.

“By making e-commerce platforms more accessible, this partnership addresses a key constraint faced by women business leaders in reaching new markets,” said Ferid Belhaj, World Bank MENA Vice President. “E-commerce platforms create opportunities, and we must ensure these opportunities are open to women-owned businesses across the region.”

UPS will provide e-learning modules on different e-commerce topics to help women-owned and women-led small and medium enterprises seeking to expand their businesses across borders.

The project will support an estimated 750 women entrepreneurs and will train a cadre of e-commerce advisors in each country who can provide tailored assistance and coaching to businesses. The partnership will work with entrepreneurs in Algeria, Djibouti, Egypt, Jordan, Lebanon, Morocco, and Tunisia.

We-Fi has made allocations to programs being implemented by the African Development Bank, the Asian Development Bank, the European Bank of Reconstruction and Development, the Inter-American Development Bank.

the Islamic Development Bank, and the World Bank Group. The World Bank and IFC We-Fi programs (US$75 million in allocations) are working with private and public partners in 24 countries via 27 investment and advisory projects to enable women entrepreneurs to access finance and markets and amplify those efforts with global research, partnerships, and policy advocacy.

The Women Entrepreneurs Finance Initiative (We-Fi) is a groundbreaking partnership that aims to unlock financing for women-led businesses in developing countries.

We-Fi’s partners include 14 donor governments, six multilateral development banks as implementing partners, and numerous other stakeholders in the public and private sector around the world.

We-Fi takes an ecosystem approach to removing barriers to women’s economic empowerment, addressing constraints and opportunities related to finance, market access, capacity and the enabling environment.

source: worldbank

For more than a decade, business in Dubai is flourishing and expanding by leaps and bounds.  Dubai has rapidly achieved its position as the global city that is the first choice of entrepreneurs for launching their dream business.

But more than a few people -especially of the Western hemisphere can not help but wonder about the fate of women in the country.

As the UAE is a country that predominately is of Arabic ethnicity and thus is Muslim. That makes them believe that Arab women are not allowed to work or do any forms of business because Islam prohibits it.

Well, the preconceived notions of the world are not all TRUE!

What they do not know is Islam was the first religion that gave rights to the Muslim women, not only that it also empowered women to do as they please. A woman in the UAE is free to do any business that she wishes to do so long as it is within legal bounds.

That is the only restriction. Otherwise, women entrepreneurs are more than welcome to turn their business idea into a reality and turn it into a profitable business venture.

In fact, women are key to the economic future of the UAE.

As a woman who is setting up a business in Dubai, the business specialists recommend that you should not invest in a business that requires significant capital investment or a lot of heavy-lifting to make it a success. Instead, you should spend your precious time and money on small but profitable business ideas so that you can divide your attention equally between your family and work.

Best Small but Profitable Business Ideas For Women Entrepreneurs in 2020:

If you are a woman entrepreneur, wanting to start a business in Dubai, then here are ten business ideas just for you:

Boutique:

Even though there are multiple boutiques in Dubai to the point that the market is saturated. Still, there is always a need and demand for pretty, unique and trendy clothes at an affordable price.

Furthermore, as Dubai is the commercial capital of the world, consumers are increasing day by day. Hence, if you have a passion for fashion, you will quickly be able to find a niche for yourself in a short time. And start making a profit.

With a sound understanding of the latest fashion trends and a reliable supply, you can easily start a business in Dubai.

The boutique business can also be done online all you need for that is an E-commerce license and you are all set.

Alteration and Fitting:

An alteration and fitting business is a simple but profitable business idea. That can be operated from your home. All you need is a sewing machine, and the skill to work it. This business is fit for women entrepreneurs or “mompreneurs” as they are lovingly dubbed.

With the smallest capital investment, the alteration business setup can be initiated. You can do this business on the side so that your focus and attention can remain on your children, and still, you will be able to turn in a handsome profit.

Renting Out Costumes and Formal Clothes:

Costume rentals and Formal clothes are two separate business ideas but are of similar nature that’s why they are paired here.

Renting out costumes is a well-received business in Dubai. As various schools, nurseries, kindergartens, theatre and ballet companies require costumes for their performances and it is cheaper for them to rent the outfits for an evening instead of buying them.

Similarly, Formal wear rentals are in-vogue right now as people prefer to rent the evening wear rather than buying them as it saves them a lot of money.

This business idea can also be started at home i.e a working example of a home based business in Dubai with minimum investment. By providing steady and trustworthy service, you can establish yourself as your local school or your neighbour’s go-to supplier.

Interior Decor Store:

A good eye for art can be easily converted into a lucrative business opportunity. If you possess this quality, then you can start your own interior business in Dubai. To set yourself apart from your competitors, you can try to add in a little bit of a twist, i.e. infuse local art, culture and crafts into your natural flair for design and decoration.

As a woman in business, this is a fantastic opportunity as people will take your advice earnestly as most believe that women are the absolute authority when it comes to interior decorating! You can use this for your advantage.

Event Planning Agency:

If you enjoy planning family get-together or just like planning, then you may be looking at your next profitable business idea, i.e. an Event planning and management agency. Running the agency requires excellent organizational, managerial and planning skills that are imperative if you are seriously considering to start this business in Dubai. 

As with every business, it is fundamental that you deliver a reliable ,on-time and dependable service to maintain the customers you have gained.

You should acquire a event management license to make your business legal.

Graduating from university in events management or a related major is a  bonus, but it is not required.

Open A Wedding Consultancy:

Similar to an event management business, if you have exceptional planning skills and can handle the immense pressure of working on a tight schedule, then you can open a wedding consultancy.

Over the past decade, the need for wedding consultants has sky-rocketed.

Nowadays, people are too busy with juggling their personal and professional life that they have zero time to stress about the necessary details that come with wedding planning.

And with the dawn of social media, creating a perfect wedding filled with whimsy and fantasy has escalated. All of these reasons have created a need for professional wedding consultants. Women entrepreneurs can consider opting for this business idea to capitalize.

Open a Pet Store:

Another low-cost, high-reward business idea is opening a pet store. This pet store can sell food for dogs, cats , birds and fish. Also, it can have cute little accessories and knick-knacks as an added attraction.

Homemade Cookie Baking E-Service:

This e-service eliminates the need for renting a space exclusively for business purposes; this is especially marvellous for mom-entrepreneurs who are juggling child-rearing with their professional lives and are trying to support their families.

Designer Throw Pillows:

All you need to start this business is an eye for detail and a knack for creating unique designs. You can produce throw pillows by employing various distinctive ways, that will give each of your creations an exclusive look and will appeal to a particular niche of customers who are willing to pay an excessive amount to get their hands on them.

Customizable T-Shirts:

Recently, customizable T-shirts business has turned into a lucrative business opportunity, so as a woman entrepreneur, you should consider this business as your debut in Dubai business sphere.

All you need to start this business is: A digital printing machine and some plain t-shirts.

If you are a women entrepreneur who has a dynamic business idea, then Dubai is the place for you to launch your business.

In case of any queries hire business setup Consultants, they will guide you effectively.

source: kwsme